P-c claims and claims-expense ratio was 60.8, falling from 62.6 one year ago. The company also noted its standard auto policy loss ratio improved two points.

P-c net premiums written were $6.58 billion, up from $6.33 billion one year ago. The carrier achieved its improved underwriting results in the first quarter despite heavier catastrophe losses, recording $164 million, up from $102 million last year. The p-c unit's investment income also rose, to $436 million from $424 million one year ago.

Strong performances from the carriers' Allstate Financial unit and higher life and annuity premiums also helped the company's quarterly earnings.

"This is a strong start for Allstate in 2005," said Allstate Chief Executive Officer Edward Liddy. "We generated solid net and operating income in this first quarter of 2005 on good revenue growth. We remain very optimistic about the remainder of 2005 and beyond."

Allstate said it also began introducing the next iteration of "Tiered Pricing" structure for its auto insurance line in the first quarter and that new versions of Tiered Pricing will be implemented for homeowners and other lines of business in the coming months.

Allstate CEO Mr. Liddy said the changes the carrier is making would allow the company to segment risks with even more sophistication and help toward continued profitable growth.